Motor Vehicle Excise Tax
The motor vehicle excise tax is a tax on the privilege of registration and is based on the number of days the vehicle or trailer was registered during the preceding calendar year. Motor vehicles are taxed in arrears. For example, tax bills issued in 2010 cover vehicle registrations from January 1, 2009 to December 31 2009. The motor vehicle tax is pro-rated to the actual number of days the vehicle is registered. Taxation of the vehicle or trailer is based on license plate activity from the previous year. All motor vehicle and trailer registration information is provided to the Town by the Department of Motor Vehicles.
If a vehicle is sold or if you move out of state license plates must be returned to the Rhode Island Registry of Motor Vehicles to stop plate activity.
Per State Statute §44-34-11,(C)(1) of the General Laws of Rhode Island directs the Rhode Island Vehicle Value Commission to adopt by rule a methodology for determining the presumptive value of motor vehicles subject to the excise tax.
The purpose of the methodology is to determine the value of motor vehicles using information concerning the make, model, type, and year of manufacture to be used in the determination of the excise taxes based on December 31, 2009.
All motor vehicles, motorcycles and commercial trucks are based on the “clean retail” value as reflected in the NADA pricing guides (National Automobile Dealers Association pricing guides).
The “clean retail” value reflected in the NADA pricing guidelines does not take into consideration the condition or the total mileage of the vehicle.
As part of the motor vehicle excise tax phase out, a $500 assessment exemption has been applied to each vehicle on a pro-rated basis.
Address changes are made through the Rhode Island Registry of Motor Vehicles. Changing your address on your drivers license does not change the address for your vehicle registration
Q. How can I appeal the excise tax on motor vehicle or trailer ?
A. Under Rhode Island General Laws, §44-34-9, excise tax on motor vehicles can be appealed to the Rhode Island Vehicle Value Commission within 30 days of the mailing of the tax bill, which is on or before August 2, 2010. Appeal forms can be downloaded from this site or one can be picked up or mailed by contacting the Tax Assessor's Office. After filing deadline of August 2, 2010 inquires regarding motor vehicle values can be made by contacting the Assesssor Office directly.
Motor vehicle excise taxes must be paid even though an appeal has been submitted. If the assessment appeal results in an assessment reduction, than a tax credit will be issued through the Tax Collector's Office.